VACATION HOME EXCHANGE HANDBOOK

In response to increased activity in many vacation markets, Asset Preservation has created a brand-new Vacation Home Handbook that covers many tax issues related to the ownership and sale of a vacation or second home. This brochure is very comprehensive, contains hyperlinks to key tax code sections and provides useful guidance to property owners, real estate professionals, closers, attorneys and CPAs in resort communities and vacation home marketplaces throughout the United States.

Security of Funds

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HOW SECURE ARE THE EXCHANGE FUNDS?

BEWARE

Security of the exchange funds is paramount to all other aspects of an exchange. Many property owners are not aware that, with the exception of minimal regulations in the state of Nevada, qualified intermediary companies are not overseen by the federal government or any national regulatory entities! The bottom line is that you have to determine whether the company selected can provide sufficient protection and financial security, in writing, before proceeding with any 1031 exchange.

INVESTIGATE THE SECURITY PROVIDED

It is critical to examine the differences between qualified intermediary companies. Most investors are not aware that exchange companies can often hold millions, and sometimes hundreds of millions of dollars, at any point in time. It is important to compare the true security that can be provided in writing when comparing many “independent” companies versus a subsidiary of a large parent company. Does a bond, even one for $10 million or more, really provide a great degree of additional security? The answer is no. Any loss above the bond amount is not covered by the bond and can leave investors unprotected.

BETTER THAN BONDED

Asset Preservation, Inc. is proud to offer all four of the safe harbors provided in the Treasury Regulations. Our many levels of security, backed by a written Letter of Assurance from Stewart Title Company, provide taxpayers with the highest degree of exchange proceed security.

QUESTIONS TO ASK AN INTERMEDIARY

Where will the exchange funds be held? (If held in a bank, are you aware that FDIC coverage is only for $250,000 per account?

In what type of account are the funds invested?

Are separate accounts set up for each client?

What are the requirements for the withdrawal of any exchange proceeds? (Is the intermediary authorized to move funds without the taxpayer’s written approval?)

Is the notarized signature of the taxpayer required for moving funds at all times? (What written documents specify this requirement?)

Can a written 3rd Party Guaranty be provided to all taxpayers? (Is this backed by a recognizable entity with an established track record and sufficient assets to cover a potential loss of exchange proceeds?)

1031 Exchange eNews

We are so thrilled with your assistance with the reverse 1031 exchange. You knew exactly when and how to do each step and how to keep us moving in the right direction. You could explain issues to us that we had difficulty comprehending. We would be delighted to use API again and also recommend the firm to others.

Jill H., Maine

So friendly, personal, efficient and competent (and painless).

Richard G., New York

This is our 4th property exchange with you. Every one of them has been a "10" experience.

Berry, Colorado

One phone call and they took care of everything, no questions - no problems.

Douglas B., Texas

Our exchange paperwork was flawless and always on time. Thank you.

William T., California

Appreciated the instant availability whenever I had a question. Also, greatly appreciated the timely notices and reminders. Thank you for a job well done.

Alice S., Wisconsin

Thank you for the very professional way in which my transactions were handled, making this a pleasant and efficient process. Thanks as well to all your associates who were very gracious to work with.

Lori H., Massachusetts

Your team is great!!! You guys deliver on what you promote when talking about the company at industry events – Thank you!

A.L., Los Angeles

We greatly appreciate the business we do with you and Asset Preservation and your consummate professionalism. No doubt we look forward to doing a lot more business together!

Andy S., New Jersey

I wanted you both to know how much I appreciate you both and all the hard work you do for me and my clients. The reason I recommend you to all my clients is because you are NOTHING SHY OF AWESOME!

Sandy R., California

Thank you for your assistance. You made my client a very happy woman.

Cristopher C., New York

You just helped me obtain a new customer! Looking forward to working with you on this one. Thanks again!

Bill K., Texas

Excellent service. Responsive, professional, and easy to do business with. Everyone I worked with was excellent!

Ferol L., San Diego

Thank you for always being responsive and prompt to my needs.

Anthony C., New York

Thank you so much. You helped make a difficult and complicated situation a pleasure, thank you!

Sandra C., California

I had such efficient people handling the paperwork and walking me through this 1031 process. I would definitely consider doing it again.

Pat H., California

We appreciate everyone's efforts and diligence. The coaching to avoid boot was awesome. Great service!

Allison L., Santa Monica

This is my second 1031 exchange with API and again you hit it out of the park. Thanks for great work.

Beverly W., Colorado

You and your office are also a pleasure to work with. Thank You.

Lisa M., Bronx

I’m not just a client, I’m also a real estate broker. When investor-clients and other real estate professionals ask who I recommend to facilitate a 1031 exchange, I will enthusiastically say – Asset Preservation. Thank you for a wonderful experience!